Mongolia National Security Council Rejected Tavan Tolgoi Plan -Source
TOKYO -(Dow Jones)- Mongolia's National Security Council has rejected a tentative investment agreement made in July between the government and international bidders for the right to develop part of the massive Tavan Tolgoi coal mine in Mongolia, a person close to the deal said Friday.
Details haven't been provided, and bidders are trying to clarify the decision by the council--which includes among its members Mongolian President Tsakhia Elbegdorj--and discover whether there are any opportunities to renegotiate the agreement, the person said.
The rights for the coal mine have been hotly contested, as Tavan Tolgoi contains some of the world's largest untapped coking coal reserves.
Bidders included China's China Shenhua Energy Co. (1088.HK), U.S. resource firm Peabody Energy Corp. (BTU) and several companies from Japan, South Korea and Russia.
Elbegdorj previously said the deal was put up for review by the National Security Council because it wasn't compliant with Mongolian laws and regulations.
Copyright © 2011 Dow Jones Newswires
Details haven't been provided, and bidders are trying to clarify the decision by the council--which includes among its members Mongolian President Tsakhia Elbegdorj--and discover whether there are any opportunities to renegotiate the agreement, the person said.
The rights for the coal mine have been hotly contested, as Tavan Tolgoi contains some of the world's largest untapped coking coal reserves.
Bidders included China's China Shenhua Energy Co. (1088.HK), U.S. resource firm Peabody Energy Corp. (BTU) and several companies from Japan, South Korea and Russia.
Elbegdorj previously said the deal was put up for review by the National Security Council because it wasn't compliant with Mongolian laws and regulations.
Copyright © 2011 Dow Jones Newswires
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